Bain Capital, the US-based investment company, announced on July 23 that it has signed a pact to acquire 90% of Adani Capital and Adani Housing.
Under the deal, Bain will buy out all of the Adani family’s private investments in the company.
The transaction is expected to close in the fourth quarter of this year. The aim of the deal is to position Adani Capital as a standalone company to expand its lending operations.
Bain’s investment comes after other global investments by companies like GQG which raised its stake in Gautam Adani’s conglomerate by about 10% in May.
Gaurav Gupta, who will continue to serve as its Managing Director and CEO of Adani Capital, will retain the remaining 10% stake in the company.
“With Bain committing Rs 1,000 crore of capital in the company, we are now equipped to grow 4x from here,” Gupta said in an statement.
The investment company has committed $120 million for Adani Capital and an additional liquidity line of $50 million in the form of Non-Convertible Debentures, as per the announcement.
Adani Capital is a non-banking financial arm of the Gautam Adani-led Adani group. The company began its lending operations in 2017.
“I am very happy that a credible investor like Bain is stepping in now and this will help the business grow manifold from here,” Reuters quoted Gautam Adani, chairman of the Adani group, as saying.
Adani Group has lately been under some pressure after American short-seller Hindenburg accused it of sharp practices. The Hindenburg episode cause an over $150 billion dive in value of the group’s stocks.
Adani group stocks have recovered by around $50 billion since the Hindenburg saga.